WAEMU: BOAD Secures Major Credit Insurance Deal to Better Finance Economies in the Region

Finance

Wednesday, 19 July 2023 12:46

WAEMU: BOAD Secures Major Credit Insurance Deal to Better Finance Economies in the Region

(Togo First) - The West African Development Bank (BOAD) has signed a CFA278 billion credit insurance policy with nine private European insurers. The lender disclosed the signing on July 17, 2023, and emphasized that credit insurance represents 11% of its total loan portfolio.

According to the BOAD, the contract will help raise this portfolio’s average rating and, consequently, positively influence its "investment grade rating" (highest-rated issued bonds).

"This insurance policy, which enhances our risk profile and that of our borrowers, will enable us to raise resources under the best conditions on the financial markets and to align ourselves with the implementation of the DJOLIBA plan initiated in 2021 with the ambition to finance 3,300 billion FCFA of projects for the benefit of UEMOA member states by the end of this plan in 2025," explained Serge Ekué, BOAD’s President.

"This is a major milestone in the deployment of the 'originate to distribute' method adopted by the Bank as part of the implementation of its Djoliba Strategic Plan," a statement from the financial institution further indicated.

The recent credit insurance covers all member States of the West African Economic and Monetary Union (UEMOA), helping the BOAD better finance these economies.

Eighteen (18) months before it signed the related policy, the BOAD signed its first individual insurance policies.

Esaïe Edoh

REFORMS OVERVIEW

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At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

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Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

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